Of the almost 6,000 people who have taken our poll (the poll is still open, please go vote), roughly 47% believe gold prices will finish 2011 between $1,500 and $1,800 an ounce. With 23% of the vote and in second place was the the $1,200 and $1,500 price range. The third place price range was comprised of the truly bullish, with the $1,800 to $2,000 price range drawing 17% of the vote, or more than 1,000 people. Only 7% of voters felt gold would come in between $1,000 and $1,200, while a scant 5.2% could envision gold prices dipping below $1,000.
How high gold prices will go has been a hotly contested debate especially as the metal has been unable to sustain highs. Gold prices are relatively flat since the start of the year, but are up 6% since the beginning of February and have also reached a record settle of $1,445.70 an ounce.
Gold prices were hit hard in the beginning of the year as traders sold positions to rebalance their portfolios, but regained momentum as political unrest in the Middle East-North Africa region ignited safe haven buying.Recent high inflation readings have also prompted traders to buyback old positions and have brought a wave of new investors into the market. Price forecasts from CEOs to experts run the gamut. Goldman Sachs (GS - Get Report) said in a research report Thursday that it expects gold to rally "towards our 3-month price target of $1,480" an ounce. Goldman is recommending investors get long on gold by buying the December 2011 futures contract currently trading at $1,426.10 an ounce. The caveat? This golden situation won't last. Goldman expects U.S. rates to recover as the second round of quantitative easing ends in June and as the U.S. economy continues to strengthen. As a result, Goldman believes gold prices will peak in 2012.